and deliver superior value for its customers and provide enough
evidences to convince them not to choose another competitive. In this
study, we study the effects of customer value, customer satisfaction and
customer loyalty on customer retention. The results indicate that all
aspects of the customer value have positive relationships with customer
satisfaction but only emotional value has a positive and direct
relationship with customer loyalty. The study confirms that while none
of customer value aspects has direct and positive relationship with
customer retention, both customer satisfaction and customer loyalty
positively and directly affect customer retention.
How to cite this paper
Nezhad, S., Jomehri, N & Javanshir, H. (2011). An empirical study to determine the critical success factors on customer retention: A case study of Iranian banking sector.Management Science Letters , 1(2), 223-234.
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Hull, L. (2002). Foreign-owned Banks: Implications for New Zealand's Financial Stability. Discussion Paper Series, DP2002/05.
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Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1–55.
Kaynak, E., & Kucukemiroglu, O. (1992). Bank and Product Selection: Hong Kong. The International Journal of Bank Marketing, 10(1), 3-17.
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Kotler, P. (1999). Marketing Management-An Asian Perspective. Singapore: Prentice Hall, Inc., 25-30.
Kuehn, A. (1962). Consumer brand choice as a learning process. Journal of Advertising Research, 2, 10-17.
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Reidenbach, R.E. (1995). Value-Driven Bank: Strategies for Total Market Satisfaction. Irwin Professional, U.K.
Reichheld, F. F & Kenny, D. (1990). The hidden advantages of customer retention. Journal of Retail Banking, 7(4), 19-23.
Reichheld, F. F. & Sasser, W.E. Jr (1990). Zero defections: quality comes to services. Harvard Business Review, 68, 105-111.
Reichheld, F.F., Markey, R.G. Jr. & Hopton, C. (2000). The loyalty effect–the relationship between loyalty and profits. European Business Journal, 12(3), 134-9.
Sheth, J. N. (1991). Consumption Values and Market Choice. South-Western Publishing Co.
Sweeney, J. C. & Soutar, G. (2001). Consumer perceived value: the development of multiple item scale. Journal of Retailing, 77(2), 203-220.
Woodruff, R. B. (1997). Customer value: the next source of competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139-53.
Wang, Y. G. & Lo, H. P. (2003). Service quality, customer satisfaction, customer value and behavior intentions: evidence from China’s telecommunication industry. The Journal of Policy, Regulation and Strategy for Telecommunications, 4(6), 50-60.
Wang, Y. G., Lo, H. P., Chi, R. Y. & Yang, Y. H. (2004). An integrated framework for customer value and customer relationship management performance: A customer-based perspective from China. Managing Service Quality, 14 (2/3), 169-182.
Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psycology and Marketing, 21(10), 799–822.
Zeithaml, V.A., Berry, L. and Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60 ( 2), 31-46.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence. Journal of Marketing, 52, 2-22.
Anderson, E. W., & Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service Research, 3(2), 107–120.
Assael, H. (1992). Consumer Behavior and Marketing Action, 4th ed., PWS-KENT Publishing Company, Boston, MA.
Bellman, S. (2003). How to Use PLS. Working Paper, Graduate School of Management, University of Western Australia
Bollen K. A., & Stine R. (1992). Bootstrapping goodness of fit measures in structural equation models. Sociological Methods and Research, 21(2), 205-229.
Butz, H. E. J. & Goodstein, L. D. (1996). Measuring customer value: gaining the strategic advantage. Organizational Dynamics, 24(3), 63-77.
Chin, W.W. (1998).The partial least squares approach for structural equation modelling, in Marcoulides, G.A. (Ed.), Modern Methods for Business Research, Lawrence Erlbaum Associates, Mahwah, NJ, 295-336.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297-334.
Dimitriadis, S. (2010). Testing perceived relational benefits as satisfaction and behavioral outcomes drivers. International Journal of Bank Marketing, 28(4), 297-313.
Fornell, C. (1992). A National Customer Satisfaction Barometer: The Swedish Experience. Journal of Marketing, 56(1), 6-21.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18, 39-50.
Gupta, S. & Zeithaml, V. A. (2007). Customer metrics and their impact on financial performance, Marketing Science, 25(6), 728-739.
Hair, J. F. jr., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivari-ate Data Analysis, 5th ed., New Jersey.
Healy, T. J. (1999). Why you should retain your customers. America's Community Banker, 8(9), 22-26.
Heskett, J. L., Sasser, W. E. & Hart, C. W. (1990). Service Breakthroughs - Changing the Rules of the Game, The Free Press, NewYork, NY.
Heskett, J.L., Jones, T.O., Loveman, G.W., Sasser, W.E., Jr., & Schlesinger, L.A. (1994). Putting the service-profit chain to work. Harvard Business Review, 72(2),164–170.
Hull, L. (2002). Foreign-owned Banks: Implications for New Zealand's Financial Stability. Discussion Paper Series, DP2002/05.
Ioanna, P. D. (2002). The Role of Employee Development in Customer Relations: The Case of UK Retail Banks. Corporate Communication, 7(1), 62-77.
Lovelock, C. H. (1996). Service Marketing, Englewood Cliffs. NJ: Prentice Hall, 122-135.
Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1–55.
Kaynak, E., & Kucukemiroglu, O. (1992). Bank and Product Selection: Hong Kong. The International Journal of Bank Marketing, 10(1), 3-17.
Keller, K. L. (1993). Conceptualizing, measuring and managing customer-based brand equity, Journal of Marketing, 57, 1-22.
Kotler, P. (1997). Marketing Management: Analysis, Planning,Implementation, and Control, 9th ed., Prentice-Hall, Upper Saddle River, NJ.
Kotler, P. (1999). Marketing Management-An Asian Perspective. Singapore: Prentice Hall, Inc., 25-30.
Kuehn, A. (1962). Consumer brand choice as a learning process. Journal of Advertising Research, 2, 10-17.
Mazumdar, T. (1993). A value-based orientation to new product planning, Journal of Consumer Marketing, 10(1), 28-41.
Naumann, E. (1995). Creating Customer Value, 1st ed., U.S.A:Thomson Executive Press, Inc.
Nunnally, J.C. (1978). Psychometric theory (pp. 78–95).New York: McGraw-Hill.
Reidenbach, R.E. (1995). Value-Driven Bank: Strategies for Total Market Satisfaction. Irwin Professional, U.K.
Reichheld, F. F & Kenny, D. (1990). The hidden advantages of customer retention. Journal of Retail Banking, 7(4), 19-23.
Reichheld, F. F. & Sasser, W.E. Jr (1990). Zero defections: quality comes to services. Harvard Business Review, 68, 105-111.
Reichheld, F.F., Markey, R.G. Jr. & Hopton, C. (2000). The loyalty effect–the relationship between loyalty and profits. European Business Journal, 12(3), 134-9.
Sheth, J. N. (1991). Consumption Values and Market Choice. South-Western Publishing Co.
Sweeney, J. C. & Soutar, G. (2001). Consumer perceived value: the development of multiple item scale. Journal of Retailing, 77(2), 203-220.
Woodruff, R. B. (1997). Customer value: the next source of competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139-53.
Wang, Y. G. & Lo, H. P. (2003). Service quality, customer satisfaction, customer value and behavior intentions: evidence from China’s telecommunication industry. The Journal of Policy, Regulation and Strategy for Telecommunications, 4(6), 50-60.
Wang, Y. G., Lo, H. P., Chi, R. Y. & Yang, Y. H. (2004). An integrated framework for customer value and customer relationship management performance: A customer-based perspective from China. Managing Service Quality, 14 (2/3), 169-182.
Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psycology and Marketing, 21(10), 799–822.
Zeithaml, V.A., Berry, L. and Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60 ( 2), 31-46.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence. Journal of Marketing, 52, 2-22.